Jan 2017 Market Overview

Beef

UK cattle numbers have become more abundant throughout December which has stabilised the market especially as we entered into the aftermath of Xmas. Fridge stocks have also recovered to a point where any swift incline in retail activity will be covered. The consistent mild weather has done very little to stimulate beef sales short term. As we enter the New Year the traditional trend patterns of subdued consumer demand is likely to prevail.

Round cut will soften as they normally do this time of year however, due to the reduced number of cattle on the ground at present the dip in prices will be nowhere near as steep compared to this time in previous years. Steaking cuts will also ease off with the exception of Rib Eyes and Fillets.  Demand for these cuts have increased as exports have increased circa 20% since Brexit meaning that processors are waiting for cattle to be
killed in order to fulfil orders. This has resulted in manufactures and retailer having to pay more than they would like in order to secure raw material.

Lamb

Liveweight prices continue to decline throughout December despite a fall in throughput (4% drop). Prices are thought to have declined due to the strengthening of the £ against the €. However, these declines have not made their way through to the individual primal prices as most remain unchanged.


Pork & Bacon

UK pig prices continued to increase during December with prices now 27p higher than the same period in 2015 and now rising for the eight consecutive month. The factors contributing to this increase have not changed. China continue to import heavily with early estimates showing record numbers (2.4 million tonnes) Back supplies remain plentiful while Bellies and Shoulders prices remain high. It has been estimated

chickenthat we should start seeing prices come back on both cuts towards mid / late Jan. Leaner cuts
(tenderloins etc) as retailers tend to promote the healthier the healthier options
throughout January.

Poultry

With Avian Flu rearing its ugly head in Europe and the UK there has been some uncertainty in the market around the overall impact of the crisis. However, despite this prices have fallen slightly going into January but increases are expected to be just around the corner.


Currency

The £ has strengthened against the € towards the end of 2016 however it has stabilised at a level that is significantly lower than the same time last year. The impact of which is still being felt throughout theindustry.

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